With €11 billion already in public funding but just 5% of global private investment, the EU is unveiling a new Scale-Up Europe Fund and "Quantum Act" to secure sovereignty in quantum, defense, AI, and more.

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Europe’s Quantum Strategy Nears Critical Phase

The European Commission’s tech chief, Henna Virkkunen, announced this week that Europe is ready to launch a game-changing push in quantum computing—shifting focus from public grants to massive private investment. Despite €11 billion allocated in public funds over the last five years, European quantum startups receive just 5% of global private capital. That must change.

Why Private Capital Matters

• Scale Remains Elusive: Without venture capital, many EU quantum startups are being acquired by foreign firms or relocating to the U.S., where funding is more plentiful.

• From Lab to Market: Quantum tech—critical for cybersecurity, defense, and AI—needs scale-up funding to transition from research to deployment. This is essential for the EU’s economic and strategic resilience.

• Digital Sovereignty at Stake: Empowering EU firms helps protect autonomy over critical technologies and reduces dependence on global tech giants.

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Tools in the Quantum Toolbox

1. Next EU Budget & Quantum Act
   The upcoming seven-year budget will earmark funds for quantum initiatives and integrate private capital tools into a comprehensive Quantum Act, guiding future investment strategy.

2. Scale‑Up Europe Fund
   A new co-investment vehicle blending public and private resources aims to deliver €100M+ growth funding to tech champions in quantum and AI—reducing Europe's scale-up capital drought.

3. Member-State Collaboration
   The strategy encourages pooling national research, infrastructure, and startups across the bloc—building pan-European quantum clusters.

Europe’s Funding Urgency

• Quantinsights from McKinsey estimate that quantum could become a trillion-dollar opportunity over 15 years.

• Funding disparity: U.S. and China dominate private quantum investment, while EU startups struggle to attract serious venture capital.

• Risk of relocation: Strong public R&D may seed innovation, but without growth capital, breakthroughs get commercialized abroad.

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What the EU’s Quantum Strategy Could Unlock

• Homegrown quantum champions in industries like cybersecurity, defense, and pharmaceuticals

• Stronger alignment with AI and semiconductor efforts under the EU’s digital sovereignty agenda

• Greater appeal to global investors, showcasing long-term EU readiness and tech ambition

• Secured supply chains for critical tech, less vulnerable to foreign ownership or control

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Final Takeaway

Europe is making a strategic pivot. By closing the private funding gap and establishing mechanisms like the Scale‑Up Europe Fund and new cooperative structures, the EU aims to scale promising quantum research into globally competitive enterprises.

This isn’t just an R&D plan—it’s a bold bid for tech leadership and sovereignty in the quantum age.